Bank of Japan lifts policy rate to 1.25% in divided decision

The short version

• The Bank of Japan approved a 0.25 percentage point rate increase to 1.25% in a 7-2 split vote.[Al Jazeera · CNBC]
• Policymakers acted to address wage growth, energy costs, and international interest rate gaps.[Al Jazeera]
• Following the announcement, the yen softened past 157 per dollar and Japanese equities gained.[CNBC]
• Market participants await statements from Governor Kazuo Ueda for indications on future policy tightening.[Al Jazeera]

Key facts

• The Bank of Japan raised its policy interest rate by 0.25 percentage points to 1.25% on Friday.[Al Jazeera · CNBC]
• The increase brings Japanese interest rates to their highest level in 31 years.[Al Jazeera · CNBC]
• Board members Toichiro Asada and Ayano Sato cast dissenting votes against the hike in a 7-2 split.[CNBC]
• Following the rate announcement, the yen weakened past 157 per dollar while the Nikkei 225 index rose 1.5%.[CNBC]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Bank of Japan raises rates to 31-year high of 1.25% as inflation risesAl Jazeera
• Why Japan’s markets flipped the usual script after central bank rate hikeCNBC